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Key Takeaways
- Apple shifting manufacturing to the U.S. is “a fairy story” regardless of President Trump threatening a tariff on iPhones made exterior the U.S., Wedbush stated.
- Wedbush estimates such a transfer would lead to an iPhones with a price ticket of $3,500, whereas the iPhone 16 presently prices $799.
- Citi analysts stated Apple would probably move a few third of upper incremental prices onto prospects and suppliers.
President Donald Trump has threatened to impose a tariff of 25% or extra on Apple (AAPL) iPhones made internationally. Wedbush analyst Dan Ives of Wedbush says there’s “no likelihood” the corporate shifts iPhone manufacturing to the U.S.
Trump on Friday warned Apple that the White Home would impose a tariff of a minimum of 25% on iPhones made exterior the U.S.—together with in India, the place the corporate has moved extra of its manufacturing amid greater tariffs on China—and bought right here. Apple didn’t instantly reply to Investopedia’s request for remark.
The idea “of Apple producing iPhones within the US is a fairy story that isn’t possible,” Ives wrote Friday. Wedbush estimates that American-made iPhones would value $3,500, whereas the iPhone 16 presently begins at $799 and the iPhone 16 Professional sells for $999.
“We see no likelihood that iPhone manufacturing begins to occur within the U.S. within the near-term given the the wrong way up value mannequin and Herculean-like provide chain logistics wanted,” Ives stated.
“I’ve way back knowledgeable Tim Prepare dinner of Apple that I anticipate their iPhone’s that will likely be bought in the USA of America will likely be manufactured and inbuilt the USA, not India, or anyplace else,” the president stated in a publish on his Fact Social platform. “If that isn’t the case, a Tariff of a minimum of 25% have to be paid by Apple to the U.S.”
JP Morgan analysts on Friday stated such a tariff would probably must cowl smartphones broadly, relatively than particularly goal Apple. In addition they instructed {that a} 5% international enhance in iPhone costs would possibly assist the corporate mitigate the results of 25% tariffs on gadgets bought within the U.S.
Citi analysts estimate {that a} 25% tariff on iPhones, which make up about two-thirds of Apple merchandise bought within the U.S., would decrease the corporate’s earnings per share by greater than 4% in fiscal 2026 and 2027. The financial institution estimates that Apple would move one-third of upper incremental prices onto its prospects and suppliers.
Shares of Apple slid almost 3% in current buying and selling Friday. The inventory is down 21% in 2025 to date.